Peer influence is considered a major determinant of adolescents' behavior and adjustment. A series of developmental changes coalesce to heighten the salience of peers, and by extension peer influence, at the outset of this stage. After early adolescence, evidence suggests that influence declines, leveling off as individuals approach adulthood. Peer influence is multidimensional and multidirectional, moderated by several personal and contextual factors. Peers exert influence in numerous ways, not all of which are intentional. The colloquial focus on peer pressure belies more common strategies such as reinforcement and behavior display (often called modeling). Scholars have given more attention to peer influences on health‐compromising than health‐promoting behavior, but there is growing evidence of its impact in both domains. Recent studies trace the neurological correlates of peer influence. More research is needed to understand how culture affects peers' impact on adolescents and to explore how social media are transforming peer relationships and influence.